Sentiment in the German real estate industry is showing initial signs of recovery, although a broad upturn has yet to materialise. In the latest Sentiment Survey 2026, conducted by RUECKERCONSULT on behalf of HIH Invest and Ypsilon Group, the sentiment index climbed from -0.41 in the previous year to -0.14 points. Over the next six to twelve months, the surveyed sector experts forecast only a subdued improvement, with a reading of 0.14. Over a five-year horizon, however, confidence is noticeably more robust, with an index score of 0.98 compared with 0.88 previously.
The sentiment varies considerably across the different market segments. While property and facility managers view their current business situation decidedly positively, jumping from 0.75 to 2.00 points, developers rank at the bottom of the scale at -0.76. Financing and transactions also remain predominantly in negative territory. Institutional investors and family offices are the only group of market participants who assess overall conditions as even less favourable than in the previous year.
Alexander Eggert, Managing Director of HIH Invest, explains that market activity is currently driven by selective opportunities, with a broad-based revival still absent. He notes that investments must prove viable against the backdrop of stable interest rates. Ulrich Creydt, Managing Director of Ypsilon Group, adds that the restraint in financing and transactions demonstrates that the normalisation of market conditions is progressing gradually and will take time.
Office markets remain weighed down by weak demand
Scepticism is particularly pronounced in the office segment. A total of 70 per cent of survey respondents anticipate falling or sharply falling space demand over the coming twelve months, with only six per cent expecting growth. At the same time, 65 per cent foresee declining investor demand, a marked increase compared with 42 per cent last year. Regarding purchase prices, 73 per cent of participants expect further discounts. Felix Meyen, Managing Director of HIH Invest, points out that older existing properties in peripheral locations in particular are under pressure, whereas investment opportunities are primarily focused on modern, ESG-compliant space in top-tier cities.
Strong occupier demand supports residential segment
In stark contrast, the residential sector sees 86 per cent of respondents reporting rising or sharply rising tenant demand. Consequently, 93 per cent of market experts forecast further rent increases, typically around five per cent. On the investment market, buyers are nevertheless acting more selectively than in previous years, which is reflected in differentiated price and demand expectations.
- —48 per cent of respondents expect rising investor demand for existing residential properties, down from 67 per cent in the previous year.
- —The proportion of market participants expecting stable demand rose from 20 to 32 per cent.
- —Regarding purchase prices for multi-family properties and apartment blocks, 48 per cent anticipate increases and 39 per cent expect stagnation.
